Entrepreneur

I think it is "5."

As you haven't consider the biggest cost involved in creating OF-like platform with 1.25 million DAU. It is, without a shadow of doubt, the marketing cost.

That line item in the cost sheet is the trickiest to quantify.

Because there is a first mover advantage involved. If you can identify a valid niche, it costs very little. People just come to you because there is no where else to go. Like starting a forest fire in summers.

But if you are the second app that is trying to be the new OF, or the 10,000th marketing agency trying get clients, your cost will hell lot more.

As someone with a keen interest in the technical aspects of digital platforms, I'd like to offer an insight into why celebrities and high-profile individuals might prefer using an established platform like OnlyFans over creating their own. While the initial build cost for a custom platform similar to OnlyFans might seem manageable, estimated between $60,000 to $150,000, this figure barely scratches the surface of the total cost of ownership and operation.

Firstly, ongoing maintenance and operational costs can be substantial. A stable and secure platform demands continuous investment in hosting, cybersecurity, software updates, and technical support. This aspect alone can rack up significant expenses, often exceeding the initial build cost over time.

Secondly, user acquisition and marketing are huge considerations. OnlyFans already boasts a large, established user base and significant brand recognition. Building a similar audience from scratch requires not only a substantial marketing budget but also time and strategic efforts.

Moreover, the legal and regulatory compliance aspect, especially when it comes to content moderation and financial transactions, adds layers of complexity and cost. Ensuring secure payment processing and adhering to various financial and privacy regulations is no small feat.

Then there's the issue of scalability and reliability. As the user base grows, the platform needs to scale accordingly, which involves additional infrastructure, resources, and investment.

Lastly, the network effect plays a crucial role. Platforms like OnlyFans benefit from their existing large community. For a new platform, creating and nurturing a similar community is a challenging and costly endeavor.

In summary, while the upfront cost for a platform might be in the ballpark of a few hundred thousand dollars, the ongoing costs – maintenance, marketing, legal compliance, and scalability – can push the total project cost into the millions. This doesn't even account for the intangible costs of time and effort needed to establish a new platform in a competitive space. Hence, for many celebrities, leveraging an existing platform like OnlyFans, with its established infrastructure and user base, presents a more practical and financially sensible option.

Who are these celebrities joining onlyfans you speak of?

It’s a nightmare tax wise especially with VAT on digital services. You are essentially liable for collecting and remitting VAT on behalf of your users and any non compliance is your risk. Not the only reason but one of the main ones.

i think you answered your own question.

Well, all except i fail to see how politics could possibly play any part in it. Seems like the “discussion” or “issue” would usually start and end at “porn good” vs “porn bad” for x many reasons

20% seems cheap… Apple Appstore takes what? 30%?

Commissions in life insurances 5-10%… Commissions in instrument sales anywhere from 5-15%…

Don't underestimate #4. It's not easy to get people to sign up to a whole new system/site. OF is a known entity. Plus, running an entirely new business (software business) is not easy. Several of the celebrities that have done this are B-listers at best, not always the most informed/managed and good with money. Real A-listers steer clear and don't want to be associated with that brand.

One thing that comes to mind is customers know onlyfans isn’t going to steal their credit card info lol